Mizuho analyst Irina Koffler estimated that Allergan could fetch $5 billion if it moves to sell its women's health business, Investor's Business Daily reported Tuesday.
Speculation that Allergan could decide to offload the business comes amid low sales for the uterine fibroids drug Esmya in Europe and generic competition for Estrace.
"Allergan may be undertaking this process if it has lowered its expectations around Esmya approval in fibroids, especially after recent liver toxicity concerns in Europe and its delayed [FDA review] date," Koffler stated.
While remarks by Allergan CEO Brent Saunders that the company was considering options to address its share decline fuelled speculation that the drugmaker could consider a sale, Koffler cautioned that a sale of the entire company could prove difficult.
"With a number of competitive overhangs on Allergan's Botox business, we think selling the entire company could prove to be more time consuming and challenging," the analyst noted, adding "however, selling the division could be a productive first step."
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